Ford reaches tentative labor deal with United Auto Workers union

DETROIT (Reuters) – Ford Motor (NYSE:) and the United Auto Workers union on Wednesday announced a tentative agreement for a new labor deal, allowing the No. 2 U.S. automaker to avoid a strike like the one that cost its larger rival General Motors (NYSE:) about $3 billion.

The union turned to Ford to negotiate a new four-year agreement after ratifying a contract last week with GM following a 40-day U.S. strike that shut down almost all of GM’s North American operations.

“The pattern bargaining strategy has been a very effective approach for UAW and its members to secure economic gains around salary, benefits and secured over $6 billion in major product investments in American facilities, creating and retaining over 8,500 jobs for our communities,” UAW Vice President Rory Gamble, head of the union’s Ford department, said in a statement.

Ford confirmed the deal in a statement, but declined further comment.

UAW leaders from the various U.S. plants will meet on Friday to approve the deal, which will then be sent to the 55,000 members at Ford for final approval, a union spokesman said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.